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Saldana v. Bronitsky (In re Saldana) ___F.4th___ (9th Cir. Court of Appeals, Nov. 22, 2024); appeal 23-15860
Creating a Circuit Split, Ninth Circuit Allows Chapter 13 debtor to continuing making voluntary contributions to debtor’s retirement plan, during debtor’s Chapter 13 bankruptcy case, and the voluntary contributions are subtracted from what would otherwise be the debtor’s disposable income, that debtor would be required to pay into the Chapter 13 plan, to fund the Chapter 13 plan The Ninth Circuit split with the Sixth Circuit in the interpretation of the ‘hanging paragraph’ in Section 541(b)(7). Courts are divided four ways on whether or how much a ‘13’ debtor may contribute to voluntary retirement plans after filing. This 9th Circuit…
Harrington v. Purdue Pharma L.P., 144 S. Ct. 2071 (2024)
In re Roman Catholic Diocese of Syracuse, (Bankr. Ct. N.D.N.Y. Nov. 14, 2024), case New York, 20-30663. The US Supreme Court, in Harrington v. Purdue Pharma L.P., 144 S. Ct. 2071 (2024) ruled that it is illegal/not permitted for a proposed bankruptcy plan to have nonconsensual releases, that make tort claimant creditors subject to the proposed bankruptcy plan, which plan releases not just debtor, but also non-debtors, and the tort claimant creditors are only paid what the plan gives them, instead of the tort claimant creditors being able to sue non-debtors directly. In that case the non-debtors were the Sacklar…
Kerns v. Foss (In re Chapter 13 Trustee’s Motions for Declaratory Relief Challenging the Constitutionality of 28 U.S.C. § 586(e)(1) and 11 U.S.C. § 1326(b)(2)
Kerns v. Foss (In re Chapter 13 Trustee’s Motions for Declaratory Relief Challenging the Constitutionality of 28 U.S.C. § 586(e)(1) and 11 U.S.C. § 1326(b)(2), ___BR___ (9th Cirm. B.A.P. Nov. 12, 2024), appeal 24-1012: The Ninth Circuit Bankruptcy Appellate Panel (“BAP”) denied the Chapter 13 Trustee’s argument that it denieds Chapter 13 Trustees due process, for Chapter 13 Trustees to only be paid Chapter 13 Trustees’ fees if a Chapter 13 plan is confirmed, and for Chapter 13 Trustees to be paid ZERO Trustee’s fees, if the Chapter 13 Plan is not confirmed in the debtor’s chapter 13 case, such…
Chicago & Vicinity Laborers’ District Council Pension Plan v. R&W Clark Construction Inc. (In re R&W Clark Construction Inc.)
Chicago & Vicinity Laborers’ District Council Pension Plan v. R&W Clark Construction Inc. (In re R&W Clark Construction Inc.), ___BR___ (US District Ct, N.D. Ill. Nov. 14, 2024), appeal 24-1463: This is turning into a trend: Judges deciding that debts can be held to be nondischargeable, per 11 USC 532, in SubV Chapter 11 cases where the subV debtor is a corporation or other entity. Here a US District Judge follows the Fourth and Fifth Circuits and rejects a contrary holding by the Ninth Circuit BAP. In his November 14 opinion, District Judge Manish S. Shah followed the Fourth and…
Klemkowski v. CitiMortgage Inc. (In re Klemkowski), __ BR__ (Bankr. D. Md. Oct. 30, 2024)
Klemkowski v. CitiMortgage Inc. (In re Klemkowski), __ BR__ (Bankr. D. Md. Oct. 30, 2024), bankruptcy case number 22-10257 which holds that it violates the bankruptcy automatic stay for a mortgage servicer to prohibit a bankruptcy debtor from using the mortgage servicer’s online payment processing system, to pay the debtor’s monthly mortgage payments. Bankruptcy Judge Michelle Harner decided that a mortgage servicer must allow a chapter 13 debtor’s continued use of an online payment platform. Bankruptcy Judge Michelle M. Harner of Baltimore decided that a mortgage servicer who barred the chapter 13 debtor from using the servicer’s online payment platform…
The American Bankruptcy Institute e-newsletter of 10/24/24 reports that the so Called “Sandwich Generation” Is Stressed Out, Low on Money and Short on Time:
More Americans shoulder a double load of caring for their children and at least one adult, often a parent. The “sandwich generation” has grown to at least 11 million in the U.S., according to one estimate, and shifts in demographics, costs and work are making it a longer and tougher slog, the Wall Street Journal reported. People are having children later, and they are living longer, often with care-intensive conditions such as dementia. That means many are taking care of elderly parents when their own kids are still young and require more intensive parenting — and for longer stretches of…
In re Jin, ___ BR ___ (Bankr.Ct, D. Md. Oct. 15, 2024) case
Bankruptcy Court decisions disagree on whether a Chapter 7 Trustee is entitled to be paid a trustee’s fee on the money the trustee pays to a NON-debtor Co-Owner of a Property, partly owned by the Chapter 7 bankruptcy debtor, which the Chapter 7 Trustee sells: Bankruptcy courts are divided on whether the calculation of a trustee’s commissions includes distributions made to co-owners of property that the trustee has sold. On a question where the bankruptcy courts are divided, Bankruptcy Judge Maria Elena Chavez-Ruark of Greebelt, Md., decided that the calculation of the compensation of a chapter 7 trustee is based…
Okorie v. Citizens Bank (In re Okorie)
A US Fifth Circuit Court of appeals case, Okorie v. Citizens Bank (In re Okorie), 24-60255 (5th Cir. Oct. 11, 2024) discusses 3 limited circumstances in which a chapter 7 debtor has standing to object to a creditor’s proof of claim, or to oppose the chapter 7 bankruptcy trustee selling the chapter 7 debtor’s house or other property. A bankruptcy court decision, In re Atiyat, 21-32555 (E.D. Va. Oct. 11, 2024) says there is a fourth circumstance in which a chapter 7 debtor has standing to do these things: On 10/11/24, both the US Fifth Circuit Court of Appeals, and…
France Is Experiencing an Unprecedented Budgetary Crisis
Credit and Collection 10/14/24 e-newsletter reports that the Country of France has such serious financial problems that France may have to file bankruptcy, which would push the whole European Union of countries into financial turmoil: France is experiencing an unprecedented budgetary crisis. The deficit is at risk of exceeding 6% in 2024. France now risks bankruptcy, which would drag the entire eurozone into the abyss. The French government is facing a troubling financial situation. The deficit could exceed 6% in 2024, forcing the executive to plan a budgetary effort of 60 billion euros for 2025. Despite this drastic measure, public…
Samson v. LCF Group Inc. (In re Bridger Steel Inc.), ___BR___ (Bankr. D. Mont. Sept. 30, 2024)
Samson v. LCF Group Inc. (In re Bridger Steel Inc.), ___BR___ (Bankr. D. Mont. Sept. 30, 2024): Can a Bankruptcy Trustee be forced to arbitrate trustee’s allegation that a creditor’s claim was usurious under applicable state law: this decision says no, Trustee cannot be forced to arbitrate. Bankruptcy Judge Hursh Decision refuses to order trustee to arbitrate trustee’s allegations that creditor’s claim was usurious under applicable state usury law. When a trustee objects to the allowance of a claim because it was allegedly usurious under state law, the trustee cannot be compelled to arbitrate the question of usury, according to…